The world is extending its support to the two of the troubled banks of the US, Citigroup Inc., and Merrill Lynch & Co.
Kuwait Investment Authority (KIA), which manages the Gulf Arab state's vast oil-generated assets, invested about USD $800 million in the initial public offering of the US credit card firm, Visa Corp. KIA had at least USD $213 billion of assets under management on March 31, 2007, according to the latest published figure. KIA might consider increasing its stake in the two US banks, Merrill Lynch & Co, and Citigroup Inc, after it already invested USD $5 billion in the two banks' capital raising efforts in January, 2008. Moreover, State-run Abu Dhabi Investment Authority (ADIA) agreed in November, 2007 to buy USD $7.5 billion of stock in Citigroup.
Citigroup said it was privately raising USD $12.5 billion - the capital infusion of nearly USD $7 billion from Singapore Investment Corp, USD $3 billion from the Kuwait Investment Authority, and an undisclosed amount from Saudi Prince Al Waleed Bin Talal, Citigroup’s largest individual shareholder.
Merrill Lynch & Co said it received a USD $6.6 billion investment from Kuwait, the Korean Investment Corp, and Japan's Mizuho Financial Group Inc. It also said it would boost its capital by raising USD $6.2 billion in a private placement with Singapore's Temasek Holdings and Davis Selected Advisors.
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